Shell, partners to evaluate oil sands projects in Athabasca area

By the OGJ Online Staff

HOUSTON, Aug. 8 -- Shell Canada Ltd. will lead an evaluation of long-term development opportunities on its oil sands resources in the Athabasca area of Alberta, joined by its partners in the Athabasca Oil Sands Project, Chevron Canada Ltd. and Western Oil Sands Inc.

The schemes include optimization and expansion of the Muskeg River Mine project on the western portion of Lease 13 and on Lease 90. The companies are considering bringing production capacity to 225,000 b/d from the current design of 155,000 b/d. If approved, work on the project would likely take place during 2005-10.

The Muskeg River Mine is on track to come on stream in late 2002.

They are also considering a stand-alone oil sands mine and extraction facility in the eastern portion of Lease 13. Jackpine Mine Phase One would have capacity of 200,000 b/d of bitumen. The project would likely follow the Muskeg River Mine expansion.

The third project would be a Jackpine Mine expansion, dubbed Phase Two. It would involve resources on Leases 88 and 89 and add 100,000 b/d.

On Wednesday, Shell released a public disclosure document and proposed terms of reference for an environmental impact assessment for the Jackpine Mine Phase One project. It said it has begun initial consultation with stakeholders.